Company Law Review Act 1998 (61 of 1998)
Schedule 2 Consequential amendment of the Corporations Law
Part 3 Shares (new Chapter 2H) Transactions affecting share capital (new Chapter 2J)
222 Subsection 588G(1A)
Repeal the subsection, substitute:
(1A) For the purposes of this section, if a company takes action set out in column 2 of the following table, it incurs a debt at the time set out in column 3.
|
When debts are incurred |
[operative table] |
|
|---|---|---|
|
Action of company |
When debt is incurred |
|
|
1 |
paying a dividend |
when the dividend is paid or, if the company has a constitution that provides for the declaration of dividends, when the dividend is declared |
|
2 |
making a reduction of share capital to which Division 1 of Part 2J.1 applies (other than a reduction that consists only of the cancellation of a share or shares for no consideration) |
when the reduction takes effect |
|
3 |
buying back shares (even if the consideration is not a sum certain in money) |
when the buy-back agreement is entered into |
|
4 |
redeeming redeemable preference shares that are redeemable at its option |
when the company exercises the option |
|
5 |
issuing redeemable preference shares that are redeemable otherwise than at its option |
when the shares are issued |
|
6 |
financially assisting a person to acquire shares (or units of shares) in itself or a holding company |
when the agreement to provide the assistance is entered into or, if there is no agreement, when the assistance is provided |